Help with binary option

Trading Discussion Currencies
1

Hey guys!
Can someone explain about the the Binary option? how does it work?

2

I’m not really super familiar with binary options myself, but this might help. :blush:

3

it’s kind of questionable whether or not it’s worthy of explanation, given that there are only really two important things to know about it:-

  1. there are some very good and valid reasons why more governments, worldwide, are gradually but increasingly making binary options illegal, and …

  2. in an important way, it doesn’t actually matter whether or not you (or any of us) can make profits from binary options, because the dealing costs with them are so much more adverse than those involved in forex trading, and the odds so much worse stacked against you, that even if you could (though nobody does, really) you’d do so much better trading forex in the normal way anyway that you’d still have nothing to gain by trading binary options instead (wow, what a long sentence - sorry!)

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4

Why they are making it illegal and why it’s not a good place to put money on?

5

I think it was the point that he tried to learn you!

Maybe it is a good thing that they are making it illegal and maybe that is a bad one!
I searched for that and found this as a reason for making illegal in a country:

Regulatory Challenges: Regulating binary options can be challenging due to their online nature and cross-border operations. We find it difficult to effectively oversee and enforce regulations in this space, leading them to opt for an outright ban to protect our citizens from potential harm. (?!!?)

That’s up to you!!

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6

these two questions are maybe one, really, because overall the fact that it’s not a good/safe way to put money on is why they’re increasingly (and rightly) making it illegal

more specifically, i think there are five main reasons:-

  1. the dealing costs with them work out to be so high that in the long run the only people who can ever profit, overall, are the “brokers” (they’re not really brokers at all, of course)

  2. the odds are stacked against the customers far worse than in the case with any other kind of trading or betting on market movements

  3. it’s an entirely unnecessary industry with absolutely no vestige of “public interest” at all, because anything you can bet on, using binaries, you can in any case bet on with far better conditions in other, safer, ways

  4. it’s an inherently deceptive industry designed specifically to attract the more gullible market participants, many of whom might imagine that they’re trading when all they’re actually doing is betting against unregulated bookies who tend to lure them in with dishonest advertising targeted at people with a gambling mentality

  5. it’s an industry which has manifestly and persistently failed, in spite of hugely adverse publicity, to regulate itself at all, and the natural and understandable trend, in society, especially in “the information age,” is that such industries do naturally tend eventually to be outlawed

again, the important thing to be aware of, in this context, is that it doesn’t actually matter whether or not you can make profits from binary options, because the dealing costs with them are so much more adverse than those involved in forex trading, and the odds so much worse stacked against you, that even if you could (though nobody does, really) you’d do so much better simply trading forex in the normal way

7

Certainly! Binary options are a type of financial derivative where traders speculate on the price movement of an underlying asset within a predetermined timeframe.

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8

wow! Thank you for the info.

9

I love how you explain everything in such a detail. Thank you.